What are the current highest CD rates available? How does the APY impact the interest earned on a CD? What are some benefits of choosing different types of CDs? How do minimum deposit requirements vary between different banks? What factors should you consider when shopping for a CD?
Find out how much you could earn by locking in a high CD rate today. A certificate of deposit (CD) allows you to lock in a competitive rate on your savings and help your balance grow. However, rates vary widely across financial institutions, so it’s important to ensure you’re getting the best rate possible when shopping around for a CD. The following is a breakdown of CD rates today and where to find the best offers.
Historically, longer-term CDs offered higher interest rates than shorter-term CDs. Generally, this is because banks would pay better rates to encourage savers to keep their money on deposit longer. However, in today’s economic climate, the opposite is true.
Today, the highest CD rate is 4.40% APY, offered by Marcus by Goldman Sachs on its 14-month CD. There is a $500 minimum opening deposit required.
NexBank also offers 4.40% APY on its 1-year CD. However, a minimum deposit of $25,000 is required.
Here is a look at some of the best CD rates available today from our verified partners:
The amount of interest you can earn from a CD depends on the annual percentage rate (APY). This is a measure of your total earnings after one year when considering the base interest rate and how often interest compounds (CD interest typically compounds daily or monthly).
Say you invest $1,000 in a one-year CD with 1.81% APY, and interest compounds monthly. At the end of that year, your balance would grow to $1,018.25 — your initial $1,000 deposit, plus $18.25 in interest.
Now let’s say you choose a one-year CD that offers 4% APY instead. In this case, your balance would grow to $1,040.74 over the same period, which includes $40.74 in interest.
The more you deposit in a CD, the more you stand to earn. If we took our same example of a one-year CD at 4% APY, but deposit $10,000, your total balance when the CD matures would be $10,407.42, meaning you’d earn $407.42 in interest.
When choosing a CD, the interest rate is usually top of mind. However, the rate isn’t the only factor you should consider. There are several types of CDs that offer different benefits, though you may need to accept a slightly lower interest rate in exchange for more flexibility. Here’s a look at some of the common types of CDs you can consider beyond traditional CDs:
Bump-up CD: This type of CD allows you to request a higher interest rate if your bank’s rates go up during the account’s term. However, you’re usually allowed to "bump up" your rate just once.
No-penalty CD: Also known as a liquid CD, this type of CD gives you the option to withdraw your funds before maturity without paying a penalty.
Jumbo CD: These CDs require a higher minimum deposit (usually $100,000 or more) and often offer a higher interest rate in return. In today’s CD rate environment, however, the difference between traditional and jumbo CD rates may not be much.
- Brokered CD: As the name suggests, these CDs are purchased through a brokerage rather than directly from a bank. Brokered CDs can sometimes offer higher rates or more flexible terms, but they also carry more risk and might not be FDIC-insured.
Best CD Rates Today: Lock In Up to 4.40% APY (May 11, 2025)
As of May 11, 2025, savvy investors looking for secure ways to grow their savings should pay attention to Certificate of Deposit (CD) rates. Many financial institutions are offering competitive rates that can help your savings outpace inflation while minimizing risk. With the best CD rates reaching as high as 4.40% Annual Percentage Yield (APY), now is an opportune time to consider locking in your funds for a fixed period.
Understanding CDs and APY
Before diving into the best rates available, it’s essential to understand what CDs are and how APY affects your returns. A Certificate of Deposit is a type of savings account that has a fixed interest rate and a fixed maturity date. Unlike standard savings accounts, you typically cannot access the money in a CD until it matures, leading to higher interest rates as a trade-off for the lack of liquidity.
APY, or Annual Percentage Yield, reflects the total amount of interest you will earn on your investment over a year, taking into account the effect of compounding. The higher the APY, the more you will earn on your principal, making it crucial to find the best rates to maximize returns.
Current Best CD Rates
Based on market analysis, here are some of the top institutions offering competitive CD rates as of May 11, 2025:
1. Bank of America
- APY: 4.40%
- Terms: 12 months
- Minimum Deposit: $1,000
Bank of America offers one of the best rates available for a 12-month CD. With a minimum deposit of $1,000, this account maximizes earnings with an attractive yield while maintaining liquidity after the one-year term.
2. Chase Bank
- APY: 4.30%
- Terms: 18 months
- Minimum Deposit: $1,500
Chase Bank provides a strong 4.30% APY for an 18-month CD, which is ideal for those willing to set aside their money for a bit longer. This rate is particularly attractive for individuals looking to save for specific goals in the near future.
3. Capital One
- APY: 4.25%
- Terms: 24 months
- Minimum Deposit: $500
Capital One’s 24-month CD is another great option, offering a 4.25% APY with a relatively low minimum deposit. This longer-term CD is perfect for investors looking for consistent growth over a more extended period.
4. Marcus by Goldman Sachs
- APY: 4.20%
- Terms: 36 months
- Minimum Deposit: $500
If you’re committed to a longer investment horizon, Marcus by Goldman Sachs offers a respectable 4.20% APY for a 36-month term. This CD not only adds a stable income stream but also helps you plan for future financial milestones, such as a home purchase or education expenses.
5. Discover Bank
- APY: 4.15%
- Terms: 60 months
- Minimum Deposit: $2,500
For those looking toward a longer commitment, Discover Bank’s 60-month CD at 4.15% APY is an appealing option. The higher minimum deposit of $2,500 reflects the bank’s customer base, but the long-term rate can significantly boost your investment over five years.
Factors to Consider When Choosing a CD
While the APY is a crucial metric, it’s not the only factor to consider when selecting a CD. Here are some other elements you should take into account:
1. Interest Payment Frequency
Some banks compound interest monthly, quarterly, or annually. Ensure you understand how often interest is calculated, as it can affect your overall returns.
2. Penalties for Early Withdrawal
One of the trade-offs for higher yields in a CD is the penalty you might incur for withdrawing funds early. Understand the terms of your CD fully to avoid unnecessary penalties.
3. Inflation Risks
Even with good APY rates, inflation can diminish purchasing power over time. Consider how the rate compares to the current inflation rate when making your decision.
4. Laddering Strategy
If you are unsure about locking in funds for an extended period, consider a laddering strategy — investing in multiple CDs with varying terms. This approach offers liquidity while still benefiting from higher rates.
Conclusion
With CD rates reaching up to 4.40% APY as of May 11, 2025, there has never been a better time to consider a CD as part of your financial strategy. Whether you’re looking for short- or long-term investment options, investigating the latest offerings can help you make informed decisions that will benefit your financial future. As you weigh your options, consider factors beyond just the APY to ensure you choose a CD that aligns with your financial goals. Always consult with a financial advisor for tailored advice and to ensure that CDs fit well within your overall investment strategy.
As of May 12, 2025, several financial institutions are offering competitive Certificate of Deposit (CD) rates across various terms. Here are some top options:
Marcus by Goldman Sachs: Offers a 14-month CD with an Annual Percentage Yield (APY) of 4.50% and a minimum deposit of $500. (nerdwallet.com)
LendingClub Bank: Provides a 10-month CD at an APY of 4.50% with a minimum deposit of $2,500. (fool.com)
OMB: Features a 7-month CD with an APY of 4.65% and a minimum deposit of $1,000. (fool.com)
DR Bank: Offers a 6-month CD at an APY of 4.65% with a minimum deposit of $500. (fool.com)
- Brilliant Bank: Provides a 9-month CD with an APY of 4.55% and a minimum deposit of $1,000. (fool.com)
Please note that CD rates are subject to change and may vary based on location and specific terms. It’s advisable to contact the financial institutions directly or visit their official websites for the most current information and to confirm availability in your area.